please help me!! question says, compute the gross margin ratio and explain its use to asses profitability.

years. Nike's acid-test ratio implies that it has enough quick assets to cover current ties. It is also on par with its competitor. Under Armour Nike's current ratio suggests it has more than enough current assets to cover current liabilities. Analysts might argue that Nike could invest some current assets in more productive assets. An acid-test ratio less than 10 means that current liabilities exceed quick assets. A rule of thumb is that the acid-test ratio should have a value near, or higher than, 10. Less than 10 raises liquid- ity concerns unless a company can get enough cash from sales or if liabilities are not due until late in the next period. Company Smilions Current Year 1 Year Ago EXHIBIT 4.17 Add Test and Current Ratios for two competitors Totaloudes Total $ 9,856 516,051 $5,474 1.8 29 09 22 Acid-test Current 2 Years Ago $ 9,282 515,587 $ 6,332 1.5 25 12 3.1 $8.698 $15.025 $ 5,958 1.6 20 1.3 29 Under Decision Maker Supplier Artster requests to purchase supples on credit from your company. You have no prior experience with three There's current is 21. its aciertos 05, and inventory makes up most of its current Do you extended test A2 Gross Margin Ratio Without enough gross profit, a merchandiser can fail. The gross margin ratio helps understand this link differs from the profit margin ratio in that it escludes all costs except cost of goods sold. The gross murgia ratio (or gross puratio) is defined as gross margin (net sales minus cost of goods sold) divided by net sales-see Exhibit 4.18 Compute the gross margin and explain it to Drotti 1 Gross margin ratio Net sales - Cost of goods sold Net sales EXHIBIT 4.18 Gros Magna Exhibit 4.19 shows the gross margin ratio of Nike for the recent years. For each of sales in the current year yielded about 14.6 in gros margin to coverall expenses and still product antico This 44.6 manis down from 16. Be in the prior you. This decrease is waarbie 2 Years Ago EXHIBIT 4.19 Gross Margo $15,112 5341 51471 530.601 ON MacBook Pro O 000 > il $ 4 % 2 3 *